Capital Allowances Act 2001 section 513

When balancing adjustments are made

Section 513 sets out the circumstances in which balancing adjustments are made in respect of qualifying dwelling-houses, who they apply to, and the time limit beyond which no adjustment arises.

• A balancing adjustment arises where qualifying expenditure has been incurred on a building and a balancing event occurs in relation to a qualifying dwelling-house within that building
• The adjustment takes the form of either a balancing allowance (a tax relief) or a balancing charge (a tax clawback), made for the chargeable period in which the balancing event occurs
• The allowance or charge is made to or on the person who held the relevant interest in the dwelling-house immediately before the balancing event took place
• No balancing adjustment is made if the balancing event occurs more than 25 years after the dwelling-house was first used